diff --git a/src/libs/TransactionUtils/index.ts b/src/libs/TransactionUtils/index.ts
index 667b98befa2c..5985ec41d5ec 100644
--- a/src/libs/TransactionUtils/index.ts
+++ b/src/libs/TransactionUtils/index.ts
@@ -38,6 +38,7 @@ import {
     getReportOrDraftReport,
     getReportTransactions,
     isCurrentUserSubmitter,
+    isInvoiceReport,
     isOpenExpenseReport,
     isProcessingReport,
     isReportApproved,
@@ -1188,6 +1189,11 @@ function isCategoryBeingAnalyzed(transaction: OnyxEntry<Transaction>): boolean {
         return false;
     }
 
+    // Invoice expense is not auto-categorized
+    if (isInvoiceReport(transaction.reportID)) {
+        return false;
+    }
+
     const pendingAction = transaction.pendingAction;
     const pendingAutoCategorizationTime = transaction.comment?.pendingAutoCategorizationTime;